Agenda Report
Fullerton City Council
MEETING DATE: FEBRUARY 6, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: DAISY PEREZ, DEPUTY CITY MANAGER
PREPARED BY: DAISY PEREZ, DEPUTY CITY MANAGER
SUBJECT: SECOND AMENDMENT TO MUSEUM OPERATION AGREEMENT WITH FULLERTON MUSEUM CENTER ASSOCIATION
SUMMARY
City Council consideration of Second Amendment to the Museum Operation Agreement. The proposed amendment addresses operational adjustments and improvements for optimal functioning of the Museum.
PROPOSED MOTION
Authorize City Manager, or designee, to execute the Second Amendment to the Museum Operation Agreement with the Fullerton Museum Center Association.
ALTERNATIVE OPTIONS
Approve Proposed Motion
Deny the proposed amendment and direct staff to renegotiate the proposed terms Direct staff to issue a termination notice to the North Orange County Community College District which would require a twelve-month notice before lease termination became effective Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARK
The City Manager concurs with the staff recommendation.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
This item has no impact to the Fiscal Year (FY) 2023-24 Adopted Budget as Amendment Two focuses on changes to exhibit-related clauses, fundraising responsibilities, modification to insurance and termination clauses. The City covers Fullerton Museum Center custodial services, utilities, building maintenance and facility capital repairs under the current agreement. The City budgeted $226,315 in Fiscal Year 2023-24 to cover these items. However, the City would also pay for capital repairs to maintain the aging building which staff would incorporate into the annual capital improvement budget process.
BACKGROUND AND DISCUSSION
The initial term of the Museum Operating Agreement with the Fullerton Museum Center Association (FMCA) commenced July 1, 2004 for a ten-year period, with an option for an additional ten-year extension upon mutual consent. Amendment No. 1 amended Agreement Sections 7.01(b) 4, 7.01(b) 5 and 11.1 on October 16, 2010. The Director of Parks and Recreation approved the association request for a ten-year extension through July 1, 2024 on July 14, 2015 despite previous disputes over its validity. City Council now seeks to ratify the extension, acknowledging the integral role played by the Fullerton Museum Center Association in exclusive management of museum operations.
The proposed changes in the second amendment, including adjustments in permitted use, exhibit-related clauses, fundraising responsibilities and modifications to insurance and termination clauses address the evolving needs and experiences of the partnership. These amendments would enable the museum to provide diverse exhibitions, educational programs and fundraising events which contribute cultural vibrancy to the community.
The City of Fullerton has leased the Fullerton Museum Center property at 301 North Pomona Avenue from the North Orange County Community College District since 1986. The City exercised the option to extend the lease in 2008 for an additional twenty years until December 31, 2028. Both the City and the Museum aim to terminate the agreement concurrently with the lease agreement between the District and the City on December 31, 2028.
The parties seek to amend the agreement to accurately reflect current and intended respective rights and obligations of facility operations. The proposed amendment allows the FMCA to hire employees and independent contractors as employees or independent contractors. FMCA would have sole responsibility for payment of all wages, salaries and benefits for its employees and independent contractors, including any required withholdings and all premiums, contributions and taxes required by law including, but not limited to, workers’ compensation insurance, unemployment compensation and disability insurance.
Attachments:
Attachment 1- Amendment Number Two
cc: City Manager Eric J. Levitt
Second Amendment to Museum Operating Agreement
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